Gold Price Soars Rs 10,200 Per Sovereign After Govt Hikes Imports Duty, Hits Rs 1,23,120
New Delhi: Gold prices in India recorded one of the sharpest single-day hike on Wednesday, May 13, after the government increased import duty on precious metal. The gold rate was hiked by Rs 10,200 per sovereign. Buyers have to pay Rs 1,23,120 for one sovereign (8 grams).
While the gold and silver prices in India are influenced by a combination of global and domestic factors, the current hike is attributed to the central government’s decision to hike the import duty.
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The international market trends, fluctuations in the US dollar, and changes in global demand for precious metals play a major role in the price variations. The recent geopolitical development, especially the war in West Asia and Ukraine has significantly influenced the price of the gold in the international market.
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Prices often rise during periods of economic uncertainty, inflation or geopolitical tensions. During the uncertain time, the investors turn to precious metals as safe-haven assets, increasing the metal’s value. The added demand during festivals and wedding seasons can also influence the gold price fluctuations, by pushing the price further.
